Polish Deal – Tax governance will be costly for business
Interview for the firma.rp.pl portal: Proposed changes to tax laws contained in the Polish Order will result in some taxpayers gaining certain savings, while others will lose much more. These will also be quite significant costs for the budget, says Łukasz Kupryjańczyk, tax adviser, partner at Thedy & Partners.
Public consultations on the amendment of tax regulations within the framework of the Polish Order are in progress. When publishing the project, the Ministry of Finance announced that it is a spectacular reduction in taxes. I guess this is not entirely true?
In my opinion, the proposed changes have a redistributive rather than a reducing dimension. This means that a large group will indeed gain some savings, but there is a group of people who will lose disproportionately more. The problem is that the losers include the many entrepreneurs who create employment and who bear the real risk of doing business. This risk is all the more real the closer we get to the next potential wave of disease and the resulting restrictions. The system so far has rewarded economic risk with relatively low burdens (e.g. in the form of health contributions). This is now set to change. As this is largely a matter of opinion, it is up to each of us to decide for ourselves whether the changes are going in the right direction. Anyway, I would not call the upcoming changes a spectacular tax reduction, but a certain modification and reshuffling of the current burdens (lower PIT, higher contributions), which may cost the state budget a lot anyway (according to preliminary estimates – several billion zlotys).
What else in the interview?
- What changes will increase the fiscal burden the most?
- Will the proposed new regulations on WHT meet companies’ expectations?
- Is the proposal of new solutions, which have not existed so far, a good idea?
The entire interview can be read at: www.firma.rp.pl: Polski Ład – ład podatkowy będzie kosztowny dla biznesu – firma.rp.pl